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Chapter 2 SC

Chapter 2 discusses factors of production, identifying land and capital as two non-human factors. It explains that wages are the reward for labor while rent is the reward for land, and outlines population growth and improved education as causes for an increase in labor quantity. Additionally, it analyzes how education and training enhance labor mobility over time, allowing workers to adapt to changing job markets and economic conditions.

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Romana Munir
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33 views1 page

Chapter 2 SC

Chapter 2 discusses factors of production, identifying land and capital as two non-human factors. It explains that wages are the reward for labor while rent is the reward for land, and outlines population growth and improved education as causes for an increase in labor quantity. Additionally, it analyzes how education and training enhance labor mobility over time, allowing workers to adapt to changing job markets and economic conditions.

Uploaded by

Romana Munir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 2

Factors of Production

Identify two non-human factors of production


Two non-human factors of production are:
1. Land: This refers to all natural resources that are used in the production of goods and
services. It includes everything from minerals and forests to water and fertile soil.
Essentially, it's any resource provided by nature that helps in the production process.
2. Capital: This refers to the tools, equipment, machinery, and infrastructure used in the
production of goods and services. Unlike financial capital (money), it focuses on physical
capital, such as factories, computers, or vehicles, that enhances productivity.

Identify the reward to labour and the reward to land.


Wages & rent

Explain two causes of an increase in quantity of labour.


Two causes of an increase in the quantity of labor are:
1. Population Growth: As the population increases, so does the potential workforce. A larger
population generally means there are more people available to work, which directly increases
the quantity of labor in an economy. This is especially true when there are more people
entering working age and fewer people retiring or exiting the labor force.
2. Improved Education and Training: When people receive better education or vocational
training, they become more skilled and prepared to enter the workforce. This not only
increases the number of people who can work but also enhances the overall effectiveness of
the labor force. A more educated or trained population can contribute to higher productivity
and potentially a larger quantity of labor available in various sectors.

Analyse why the mobility of labour may increase overtime.

Education and training equip workers with a wider range of skills, making it easier for them to
switch between jobs. For example, someone trained in both technical and soft skills may move
from a factory job to a service-sector role. This increases occupational mobility—the ability to
move between different types of work.As education systems become more standardized and
qualifications more widely recognized (e.g., through national or international accreditation),
workers can move more easily between regions or countries. This supports geographical
mobility, allowing labor to flow where it's most needed.Ongoing training helps workers keep up
with technological advancements, making them more adaptable and open to roles in new and
evolving industries. This adaptability boosts both occupational and geographical mobility
since these workers are more likely to find employment in growing sectors across various
locations. As economies evolve, certain regions or industries may experience growth while
others decline. This flexibility to move based on economic conditions increases labor mobility.

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